Wunderlich Comments on Markel's Q4 10 Beat (MKL)

Wunderlich is out with its report today on Markel MKL, after MKL's Q4 10 EPS beat. In a note to clients, Wunderlich writes, "Markel Corp (MKL) reported 4Q10 and year-end results well above our estimates. Operating EPS increased 49% to $13.44 compared to $9.05 a year ago and our estimate of $4.62. FY10 operating EPS were $24.94 compared to $26.04 in FY09. The consensus was $4.38 for 4Q10 and $16.00 for FY10. The results well exceeded expectations due to significant favorable reserve development and a $30 million tax credit associated with international operations. In addition, MKL achieved 3% premium growth in 2010 due to acquisition and diversification strategy and despite difficult conditions in Excess and Surplus (E&S) lines. We rate MKL shares a Buy with $475 price target." Shares of MKL closed Wednesday at $401.70.